Bagong Barrio

Caloocan City

CHAPTER I

PROJECT BACKGROUND AND HISTORY

Project Proponents

The proponents of the business are Sunshine DIzon and Jelene Ibarrola. They

thought of a unique product that is rare in the market which is leche flan in an egg shell.

The business is named Sweet Shilenes’ because leche flan is sweet that is why Sweet is

their first business name and Shilenes for the proponents name which is Shunshine and

Jelene.

Propose name of the Business

The proposed name of the business is Sweet Shilenes’ which comes from sweet

leche flan and shilenes from Shunshine and Jelene the proponents. Sweet Shilene’s had

been chosen in order to procure the best unique business with our specialization in

servicing the people and giving them the best dessert product available in the country.

Type of Business Organization

Partnerships

The proposed business will be organized as a general partnership. This partnership

will be formed according to the articles of the Civil Code of the Philippines that defines

partnership as an organization where two or more persons bind themselves to contribute

money, property or industry to a common fund with the intention of dividing the profits

among themselves.

The partnership will operate based on its partnership agreement in its Article of

Partnership specifies the functions and responsibilities of each members.

This type of business ownership is considered because of the following advantages:

• it could easily be formed

• there are more persons to conduct the business and to handle its problems

• and the combined ability and resources of partners are source of strength.

The proposed business will adopt the line type of internal organization. Under this type of

organization, there is a direct flow of authority from one top position to immediately

subordinate levels. This authority flows to subordinate positions directly below and as it

goes down it is subdivided. The line type of organization has clear and distinct channels

of authority and responsibility

Location of the Business

The business is located in Bagong Barrio Caloocan where one of the proprietor

was residing. The business would be located in Bagong Barrio Caloocan where many

people are passerby and

Brief History of the Business

Leche Flan is a dessert Filipinos love. Leche Flan is a very sweet and caramel like

dessert. Lechan Flan is mostly cooked in Christmas and without it your Christmas eve is

not complete. But, you can also bake it at anytime of the year and sell it to other people.

This will be a good source of income because it is a popular food that people loves.

Sweet Shilenes’ create new dessert product relating to current taste of community.

This marketing plan illustrates our market segments and the strategies we are employing

to get customers and create a solid revenue stream. We are not just any food

establishment. Our unique focus of creating new dessert and appetizers with a new twist

gives us an advantage over our competitors by giving customers a new taste to enjoy

delicious dessert.

Sweet Shilenes’ is our new product to be introduced to the market. This marketing

plan is prepared for Sweet Shilenes’. People find ways on how to save money in many

ways, in result; we created a new twist for a dessert meal from the existing one. Just same

thinking that the enterprise would want to achieve, producing sweet leche flan that place

in an egg shell. If this is the idea, in the beginning be careful while breaking the eggs.

Make a small hole in the eggshell to separate the egg yolk from the egg white. Do the

same instructions above but instead of putting it in an aluminum tray; use a food syringe

to transfer the mixture inside the eggshell. Try to cover the hole in the egg shell. Place the

egg shells in the steamer carefully. Let it cook for 45 minutes to 1 hour. Place it in a

package creatively and voila, you have a yummy dessert for the whole family.

CHAPTER II

TECHNICAL STUDY

PRODUCTION DESCRIPTION

Sweet Shilenes’ is determined to become a daily necessity for local Leche Flan in

an Eggshell dessert addicts, a place to dream of as you try to escape the daily stresses of

life and just a comfortable place to meet your friends or to read a book, all in one. With

the growing demand for high-quality gourmet Leche Flan in an Eggshell dessert and

great service, Sweet Shilenes’ will capitalize on its proximity to the Bagong Barrio

Caloocan City to build a core group of repeat customers. Sweet Shilenes’ will offer its

customers the best prepared leche flan in an egg shell in the area that will be

complimented with other pastries, as well as free books that its patrons can read to enjoy

their visit.

PRODUCTION SCHEDULE

In starting the operation of the business, the owners should complete the

necessary documents and requirements needed for the legalization; this stage of business

is organized in a formal manner, which requires registration in various regulating

government agencies.

Before a partnership can operate legally, it must first to comply with certain level

registration that are summarized as follows:

Place of Registration

1. Security and Exchange Commission (SEC)

2. Department of Trade and Industry (DTI)

3. City of Municipal Hall Permit (Mayor’s Permit)

4. Bureau of Internal Revenue

5. Social Security System

6. Other Agencies as may be required

In building business there are certain requirements to make specific business

legal. If the following cannot be obtained the operation will not function well.

BIR 1902 DTI application

Business Permit For employees: SSS,PhilHealth,Pag- ibig

Barangay Clearance Declaration of real property tax

Fire Inspection CertificateSEC

Sanitary plumbing Permit Building Permit

Manufacturing process

The p roduc t i on i s ve ry s imp le . I t s ma in conce rn i s t o ensu re

t he qua l i t y and t a s t e o f i t s p roduc t .

Figure 1.4 Shows Manufacturing Process of Leche Flan in an Egg Shell

Combine all ingredients,

Crack egg shell in two not even and pour leche plan in the biggest part.

Recipe of Leche Flan in an egg shell

6 large eggs

3 cups whole milk

1/2 vanilla bean, seeds scraped

1/2 cup sugar

1 envelope unflavored gelatin (about 2 1/4 teaspoons)

1/2 teaspoon salt

Directions

Using a paring knife, score eggshells two-thirds of the way up, and carefully

crack. Separate egg whites and yolks. Transfer 5 egg yolks to a bowl; reserve egg whites

and remaining yolk for another use. Bring a small pan of water to a boil. Add eggshells,

and boil 3 minutes. Using a slotted spoon, remove shells, and drain. Scrape out

membrane, and discard. Set eggshells aside in an egg carton.

Top with the egg shell remaining

Freeze for 30 minutes and serve

Put milk, vanilla bean and seeds, and sugar into a medium saucepan; sprinkle with

gelatin. Let stand until softened, about 3 minutes. Cook over low heat, stirring until sugar

and gelatin are dissolved, about 2 minutes.

Whisk salt with egg yolks. Slowly whisk in hot milk mixture until combined, and

then pour back into saucepan. Cook over low heat, stirring occasionally, until custard is

thick enough to coat the back of a spoon, about 3 minutes. Remove vanilla bean. Pour

custard through a sieve into a pitcher; discard solids.

Pour 2 tablespoons custard into each eggshell, and divide remaining custard

among six 6-ounce ramekins (alternatively, divide all custard among eight 6-ounce

ramekins). Refrigerate until set, about 4 hours.

BUILDING & FACILITIES

EQUIPMENT QTY. UNIT COST TOTAL COST

Computer w/printer 2 25,000 25,000

Telephone 2 1,500 3,000

Wall clock 2 200 400

Fax Machine 1 5,000 5,000

Television 4 5,000 20,000

CD player 1 5,000 5,000

CD rack 1 400 400

Medicine Cabinet 1 550 550

Component 1 19,550 19,550

Emergency light 4 1,450 5,800

Generator 1 12,675 12,675

Office Chairs 2 1000 2,000

Air Conditioner 4 17,000 68,000

Exhaust fan 2 1,800 3,600

Fire extinguisher 4 3,600 14,400

Oven chamber 1 100,100 100,00

Walking chiller 1 98,700 98,700

Griller 1 50,000 50,000

CAKE CABINET 2 60,000.00 120,000.00

WATER SOFTENER 1 8,000.00 8,000.00

Gas range (heavy Duty) 1 15,770 15,770

Water dispenser 1 1,000 1,000

Stainless knives 1set 200 200

Spoodle 4 20 80

Ladle 4 20 80

Measuring cups 1set 30 90

Mortar and pestle 2 40 80

Dessert plates 250 200 50,000

Glasses 250 50 12,500

plates 250 60 15,000

tray 75 200 15,000

Tissue holder 40 30 1,200

Pitcher 3 250 750

Leche Flan in an Eggshell dessert Mugs 100 90 9,000

Kettle 2 300 600

Juice dispenser 7 500 3,500

cups 250 25 6,250

Knife sharpener 2 250.00 500.00

Wooden rice spoon 2 30.00 60.00

Set of measuring spoon 1 34.75 34.75

Measuring cup 1 40.00 40.00

Bottle opener 1 85.00 85.00

Food tongs 3 70.00 210.00

WASTE DISPOSAL

In Bagong Barrio Caloocan City especially in the place where the shop is located,

the proponents will pay the disposal team which comes everyday to pick up the garbage.

Every other day of throwing the garbage will make the environment of the Sweet

Shilene’ Leche Flan in an Eggshell. It will provide customer satisfaction on seeing the

environment of the Sweet Shilene’ Leche Flan in an Eggshell business in neat.

SWOT

Strengths:

1. Demand: The demand for leche flans and quality products at competitive prices

is enormous in Bagong BArrio Caloocan City.

2. Customer base: The customer base which is the main element whilst determining

the target market in Bagong BArrio Caloocan City.

3. Location: The location factor as argued by Laurence Mathew (2005) is a critical

element for strategic positioning of an organization in the target market. The fact that

the Bagong BArrio Caloocan City importance and a shop located there can attract

customers from both the national and international market makes the location factor

as a key strength for setting-up a Sweet Shilenes’ Leche Flan in the Bagong BArrio

Caloocan City.

Weaknesses:

1. Volatile customer base: The major weakness is the volatile nature of the

customer base in the Bagong BArrio Caloocan City. The fact that even though the

customer potential in the Bagong BArrio Caloocan City is vast, but ever changing

due to the nature of the business in the Bagong BArrio Caloocan City makes the

customer potential as a critical weakness as much as it is argued as a strength. Since

this is an apparent factor for any shop in Bagong BArrio Caloocan City, the weakness

is oblivious in nature.

2. Seasonal business: Another important factor that needs to be considered is that

Bagong BArrio Caloocan City caters high level of customers during the periods of

holiday making whilst supports only the business travellers at other times. This

makes it clear that the business for the Sweet Shilenes’ Leche Flan is seasonal in

nature.

Opportunities:

1. Differentiation by Pricing: the demand for quality products at competitive

pricing is an increasing demand at the Bagong Barrio Caloocan City especially from

the customers visiting from the far east of the world as argued by Laurence Mathew

(2005). This demand can1 be harnessed by the Sweet Shilenes’ Leche Flan through

providing value-added services and quality products at competitive prices. The

financial analysis in the next section will provide a deeper insight on the pricing of

the products.

2. Diverse Target market: The diversity in the market which is merely due to the

diversity in the passengers to the Bagong Barrio Caloocan City provides an effective

method of attracting a niche market or more than one segment of the market with

customised products whilst providing a base line of product range to meet the overall

demand of the customers.

3. Promotion through embracing culture: The fact that the Bagong Barrio

Caloocan City caters visitors from difference culture makes it clear that the Sweet

Shilenes’ Leche Flan can attract customers through embracing its promotions

reflecting upon specific culture. This even though might appear niche marketing, is

actually a successful method of reaching the wider market where the visitors would

appreciate the innovation in the promotion as argued by Laurence Mathew (2005).

Threats:

1. Terrorism: The major threat is the element of disaster that can be caused by

terrorist attacks. The fact that Bagong Barrio Caloocan City is a pivotal location for

terrorist attack is the major threat faced by any shop in Bagong Barrio Caloocan City.

2. New entrants and costs: The threat of new entrants in the market is a critical

element. This is also an increasingly concerning factor with the rapid deployment of

the construction project for Bagong Barrio Caloocan City which not only increases

the opportunities from development but also the threat of new entrants and stiff

competition in the target market.

From the analysis above it is clear that even though there are potential threats and

certain weaknesses in starting a Sweet Shilenes’ Leche Flan at the Robinson’s Place

Ermita, the strengths and opportunities are out performing the weaknesses and threats

thus justifying the investment for a new Sweet Shilenes’ Leche Flan in Robinson’s Place

Ermita.

DEMAND AND SUPPLY

DEMAND

Based on the data gathered, the past demand shows an increase from 68,850 in 2010

to 76,260.00 and has annual average increase of 2.58%.

Year Y X X2 EXY

2010 68,880.00 -2 4 -137,760.00

2011 69,700.00 -1 1 -69,700.00

2012 71,340.00 0 0 0

2013 73,800.00 1 1 73,800.00

2014 76,260.00 2 4 152,520.00

EY= 359,980.00 10 EXY= 18,860.00

SOLUTION:

Yc = a+ bx

Where:

A = y/n

= 359,980/5 = 71,996

B = xy/x2

= 18,860 / 10 = 1,886

Yc = 71,996 + 1,886x

Project demand

Year X EXY

2010 3 77,654

2011 4 79,540

2012 5 81,426

2013 6 83,312

2014 7 85,198

The proponents use statistical straight line method to project the demand for five

years. The projection shows that the demand of Sweet Shilene’ Leche Flan in an

Eggshell has annual increase of 2.35% and it increases from 77,654 in year 2005 to

85,198 in year 2009.

C. Supply

The table is presented to determine the supply of Sweet Shilenes’ Leche Flans in

Bagong Barrio Caloocan City. The supply shows that the past supply of Sweet Shilene’

Leche Flan in an Eggshell increased from 52,137 in 2001 to 61,664 in 2005, with an

average annual increase of 4.31%.

Past supply of Sweet Shilene’ Leche Flan in an Eggshells

Year Supply Supply

2010 37,741 52,137

2011 39,654 55,516

2012 40,054 56,076

2013 42,111 58,955

2014 44,046 61,664

Projected supply of Sweet Shilene’ Leche Flan in an Eggshells

Year Y X X2 EXY

2010 52,137 -2 4 -104,274

2011 55,516 -2 4 -55,516

2012 56,076 -2 4 0

2013 58,955 -2 4 58,955

2014 61,664 -2 4 125,528

EY=284,348 10 EXY=22,493

Solution :

Yc = a + bx

Where:

A = y/n

= 284,348 / 5 = 56.870

B = xy / x2

= 22,493 / 10 = 2,249

Yc = 56,870 + 2,249x

Year X Yc

2010 3 63,617

2011 4 65,866

2012 5 68,115

2013 6 70,364

2014 7 72,613

The proponents used statistical straight line method in projecting the supply for

the next five years. The period supply for Sweet Shilenes’ Leche Flans in Bagong Barrio

Caloocan City.

This shows an increase from 63,637 in 2005 to 72,613 in 2009 and having an

average annual increase of 3.36%,

Demand and supply analysis, demand/supply gap

As a result f an average annual increase of 2.58% in past demand and an average

of 4.31% increase in supply for sweets shop, still it is very insufficient to satisfy the

demand of Sweet Shilenes’ Leche Flans in Bagong Barrio Caloocan City.

. The demand and supply gap analysis shows that the supply cannot meet the

increasing demand of Sweet Shilenes’ Leche Flans in Bagong Barrio Caloocan City,

the percentage of unsatisfied was presented in the table below.

Year demand supply demand unsatisfied

and supply gap demand

2010 68,880 52,137 16,734 24.31%

2011 69,700 55,516 14,184 20.35%

2012 71,340 56,076 15,264 21.40%

2013 73,800 58,955 14,845 20.12%

2014 76,260 61,664 14,596 19.14%

Demand and supply analysis

The demand and supply gap analysis from the past gap analysis shows the

unsatisfied consumer of Sweet Shilenes’ Leche Flans in Bagong Barrio Caloocan City,

since 2010 having 54.31% to 19.14%. but by entering into the business to contribute the

proponents share the unsatisfied consumer and will tend to drop form 18.08% in 2010 to

14.77% in 2012.

Projected Projected demand unsatisfied

Year demand supply and supply gap demand

2010 77,654 63,617 14,038 18.08%

2011 79,540 65,866 13,674 17.19%

2012 81,426 68,115 13,311 16.36%

2013 83,812 70,364 12,448 14.85%

2014 85,198 72,613 12,585 14.77%

CHAPTER III

THE MARKET STUDY

Demand of product

Based on t he r e sea r ch , l e che f l an ha s evo lved i n to one o f t he

wor ld ’ s mos t popu l a r de s se r t s , t ha t ’ s why t he demand fo r t h i s i s

ve ry p romi s ing .

Price of the product

l e che f l an ha s chosen fo r t he s t udy because I t ha s p roven i t s

wor th i n t e rms o f t a s t e . The p roduc t w i l l su r e ly be l i ked by t he

consumer s .

The p r i c e i s cons ide red t o be cheape r t ha t o the r de s se r t such

a s s ans r i va l , c ake , and merangue . I t wou ld on ly cos t a cus tomer

P35 .00 fo r a l e che f l an i n an egg she l l .

S ince Bagong Ba r r i o i s a s one o f t he known p l ace i n Me t ro

Man i l a , t he l oca t i on i s cons ide red a s advan t age . The a r ea i s one o f

t he mos t de s i r ab l e l oca t i ons .

The marketing program for the product

Leche F l an i s s i t ua t ed i n t he a r ea no t h igh t r a f f i c coun t

because i t i s l oca t ed a t Bagong Ba r r i o Ca loocan C i ty , wh i ch ha s a

g r ea t advan t age i n a ch i ev ing t he k ind o f a tmosphe re t he bus ine s s

wou ld l i ke t o have .

Based on t he ma rke t ana ly s i s , t he p roduc t ha s an edge ove r i t s

compe t i t o r s . Because i t c ap i t a l i z e on i t s un ique concep t and i t s

f l avo r s g ive s r e f e r ence t o t he ch i l d r en imag ina t i on by wh ich a r t ,

t oge the r w i th o the r ch i l d r en pa r t s , i s c r ea t ed .

Organizational Chart

PROPONENTS

Staff

OVERALL OBJECTIVES

To l end i t s con t i nu i t y and v i t a l i t y i n p roduc ing de l i c i ous

and nu t r i t i ous l e che p l an i n an egg she l l compa re t o any

shops ex i s t i ng t oday .

SPECIFIC OBJECTIVES

To P rov ide cus tomer s w i th a un ique t a s t e o f l e che

p l an i n an egg she l l

To g row a t a p ro f i t ab l e r a t e t o c r ea t e emp loymen t

To ma in t a in hea l t hy i ng red i en t s f o r pe r sona l we l l -

be ing

To e s t ab l i sh new s t a l l eve ry 2 yea r s

CHAPTER IV

MANAGEMENT OF THE STUDY

Logo and Descr ip t ion

Thi s i s t he chosen l ogo because i t shows t he p roduc t i t s e l f , t he

l e che f l an i n an egg she l l . I t i s cons ide red t o be a mou thwa te r i ng

pho to t ha t consumer s wou ld su r e ly l i ke t o t a s t e and w i l l be ve ry

a f fo rdab l e fo r eve ryone .

Job titles

Propr i e t re s s – Respons ib l e i n t he ove r – a l l ope ra t i on o f

t he bus ine s s f rom Marke t i ng t o Book keep ing t o Managemen t

ope ra t i on .

Server – Respons ib l e fo r s a l e s r emi t t ance .

Do a s s igned t a sks and a s s ignmen t g iven by t he manage r .

Do t he end l i ne j obs i n t he ope ra t i ons .

Plant Lay-out

30sqm

I . 1 . OTHER MARKET INFLUENCES

Desse r t s l i ke l e che p l an i n an egg she l l a r e ex t r a l i t t l e

some th ing a t t he end o f a mea l t ha t j u s t s c r eams l uxu ry and

decadence . I t ’ s a l i t t l e b i o f s e l f i ndu lgence t ha t make u s f e e l good .

Unfo r tuna t e ly , mos t de s se r t s a l so r e l y heav i l y on suga r o r o the r

i ng red i en t s t ha t we know a ren ’ t good fo r u s . Tha t good f ee l i ng

qu i ck ly t ha t i t t u rn s i n to gu i l t

l e che p l an i n an egg she l l i s a swee t concoc t i on made w i th

mi lk and egg yo lk s . t ime i f we cou ld make We l l , t he t hough t o f

mak ing e ach t i ny l e che p l an i n an egg she l l j u s t s eemed t oo much

work . l e che p l an i n an egg she l l wou ld be ea s i e r . Same t a s t e , s ame

t ex tu r e bu t w i th a un ique wrapp ing i n an egg she l l .

The e s sence o f e - commerce i n ou r r e sea r ch i s r ap id ly

g rowing bus ine s s t ha t mos t peop l e a r e now eage r t o run w i th . As t he

In t e rne t ha s cove red a lmos t a l l t he wor ld i nc lud ing eve ry nook and

co rne r , peop l e now can connec t w i th t he oppos i t e po l e w i th in a f ew

second a t m in imum p r i ce . So , t he ma rke t i ng t h rough i n t e rne t ha s

become ea sy and any p roduc t o f any p l ace i s ava i l ab l e eve rywhe re .

I t means you r bus ine s s c an sp read wor ldwide i n sho r t span .

More and more bus ine s se s owne r s a r e go ing fo r on l i ne

bus ine s s a s i t c an b r i ng more po t en t i a l c l i en t s t o t hem. Fo r any k ind

o f p roduc t , whe the r i t i s med i c ina l , home app l i ance o r c l o th ing , you

can v i ew you r r equ i r ed t he i t ems f rom home wi th t he he lp o f

I n t e rne t ma rke t i ng webs i t e s and p l ace o rde r f o r t he i t ems you wan t .

And on t ime , you w i l l ge t t he p roduc t s a t you r t h r e sho ld .

MARKETING STRATEGY

As the cus tomer s t oday a r e smar t e r t han be fo re , t hey l i ke t o

have d i f f e r en t k ind o f t h ings f rom d i f f e r en t pa r t o f t he wor ld .

I n t e rne t ma rke t i ng ha s made i t e a sy and s i t t i ng a t home , cus tomer s

c an s ea r ch fo r t he p roduc t s t hey wan t t o buy and can o rde r i t . Be fo re

go fo r buy ing i t , cu s tomer s c an v i ew the p roduc t . I nc lud ing a l l t he

f a c i l i t i e s and conven i ence t ha t bo th t he cus tomer s and t he bus ine s s

owne r s may ge t f r om the e - commerce marke t i ng , t he r e i s much

impor t ance o f on l i ne marke t i ng .

QUALITY ASSURANCE

These qua l i t y s t anda rds w i l l be ba sed on cus tomer

expec t a t i ons w i th r ega rd t o :

Pe r fo rmance

Produc t l i f e when p rope r ly u sed and ma in t a ined

Sa fe ty o f u se

Appea rance

The Qua l i t y Assu rance P rog ram wi l l i n t eg ra t e a l l

f unc t i ons o f t he company i s a coo rd ina t ed , r e spons ive ,

and e f f i c i en t e f fo r t t o a ch i eve t h i s qua l i t y goa l by :

Main t a in ing h igh s t anda rds i n pu rchas ing r aw ma te r i a l s

and componen t s .

Con t inu ing t o improve ou r manufac tu r i ng f ac i l i t i e s

equ ipmen t and me thods .

Main t a in ing a qua l i t y a s su rance o rgan i za t i on and sys t em

wh ich w i l l a s su re qua l i t y p roduc t s a t op t imum cos t s .

The Qua l i t y Assu rance o rgan i za t i on sha l l have t he p r ima ry

r e spons ib i l i t y fo r measu r ing qua l i t y and p rov id ing qua l i t y

mo t iva t i on ; howeve r , qua l i t y consc iousnes s i s t o be an i n t eg ra l pa r t

o f t he a c t i v i t i e s o f e ach depa r tmen t w i th in t he company .

Consequen t l y a l l member s o f managemen t a r e t o con t i nua l l y

s t imu la t e and encou rage commi tmen t on t he pa r t o f a l l emp loyees t o

fu l f i l l t he company ' s po l i cy . Th i s commi tmen t w i l l be d i r ec t ed

t oward t he fo l l owing p r i o r i t i e s :

Qua l i t y p roduc t s and s e rv i ce s

On- t ime de l i ve ry

Cos t

Projected financial statement

Table 1.6 Shows the Projected Balance Sheet of Sweet Shilenes’

2012 2013 2014 2015

Assets

Current Assets

Cash 654,160.00 1,422,640.00 2,259,616.00 3,172,472.00

Prepaid rent 30,000.00 30,000.00 30,000.00 30,000.00

Merchandise

inventory8,410.00 9,251.00 10,176.10 11,193.71

Total Current

Assets692,570.00 1,461,891.00 2,299,792.10 3,213,665.71

Fixed Assets

Machineries and

equipment 11,520.00 11,520.00 11,520.00 11,520.00

Less: Accu.

Depreciation 2,200.00 2,200.00 2,200.00 2,200.00

Total Fixed

Asset 9,320.00 9,320.00 9,320.00 9,320.00

Total Assets Php715,610.00 Php1,484,931.00 Php2,322,832.10 Php3,236,705.71

Liabilities and

owner equity 715,610.00 1,484,931.00 2,322,832.10 3,236,705.71

Projected Balance Sheet

Table 1.6 Shows the Projected Balance Sheet of Sweet Shilenes’

2012 2013 2014 2015

Assets

Current Assets

Cash 654,160.00 1,422,640.00 2,259,616.00 3,172,472.00

Prepaid rent 30,000.00 30,000.00 30,000.00 30,000.00

Merchandise inventory

8,410.00 9,251.00 10,176.10 11,193.71

Total Current Assets

692,570.00 1,461,891.00 2,299,792.10 3,213,665.71

Fixed Assets

Machineries and equipment 11,520.00 11,520.00 11,520.00 11,520.00

Less: Accu. Depreciation 2,200.00 2,200.00 2,200.00 2,200.00

Total Fixed Asset 9,320.00 9,320.00 9,320.00 9,320.00

Total Assets Php715,610.00 Php1,484,931.00 Php2,322,832.10 Php3,236,705.71

Liabilities and owner equity 715,610.00 1,484,931.00 2,322,832.10 3,236,705.71

E. ) F inanc ia l Ana lys i s

Pro f i t ab i l i t y

Ne t P ro f i t Marg in = Ne t i ncome a f t e r t ax

Sa l e s

Tab l e 1 .7 Shows t he Ne t P ro f i t Marg in o f Sweet Shilenes’

Yea r 1 Yea r 2 Yea r 3 Yea r 4 Yea r 5

P287 , 040

672 ,000

P331 , 520

739 ,200

P373 , 024

813 ,120

P418 , 144

894 ,432

P478 , 542

983 ,875

.43 .45 .46 .47 .49

Ope ra t i ng P ro f i t Marg in = P ro f i t be fo re t axe s

Sa l e s

Tab le1 .8 Shows t he Ope ra t i ng P ro f i t Marg in o f Swee t Sh i l ene s ’

Year 1 Year 2 Year 3 Year 4 Year 5

P358 , 800

672 ,000

P414 , 400

739 ,200

P466 , 280

813 ,120

P522 , 680

894 ,432

P598 , 178

983 ,875

.53 .56 .57 .58 .60

Gros s P ro f i t Marg in = Gros s P ro f i t

Sa l e s

Tab l e 1 .9 Shows t he Gros s P ro f i t Marg in o f Sweet Shilenes’

Yea r 1 Yea r 2 Yea r 3 Yea r 4 Yea r 5

P268 ,320

672 ,000

P295 ,152

739 ,200

P324 ,667 .2

813 ,120

P357 ,133 .92

894 ,432

P392 ,847

983 ,875

.40 .40 .40 .40 .4023

Sources of financing the project

From Sav ings accoun t s P30 , 000 .00

From pa ren t s 35 , 000 .00

P65 , 000 .00

Projec ted Cash F low

Table 1 .5 Shows the Cash F low o f Swee t Sh i l enes ’

2012 2013 2014 2015 2016

Cash Receipts

from operation

P672,000 P739,200 P813,120 P894,432 P983,875

Cash

Disbursements

Purchases 420, 000 462, 000 508, 200 559, 020 614, 922

Salaries 67, 200 67, 200 73, 920 84, 000 84, 000

Rent 120, 000 120, 000 120, 000 120, 000 120, 000

Bonus 5,000 5, 000 6, 000 7, 000 7, 000

Misc. 12, 000 14, 400 15, 600 16, 800 18, 000

Taxes and

licenses

5, 000 5, 000 6, 000 6, 500 7, 000

Income tax 71, 760 82, 880 93, 256 104, 536 119,636

Net Cash 712, 960 768,480 836, 976 912, 856 985, 558

Cash Bal. beg. 58, 800 654, 160 1, 422, 640 2, 259, 616 3, 172, 472

Cash Bal. end. 654, 160 1, 422, 640 2, 259, 616 3, 172, 472 4, 158, 030

Current operating expenses

PERMITS AND BUSINESS REGISTRATION

Barangay clearance P 70.0

Business permit (barangay) 250.00

Business tax (local tax) 300.0

Permit fees-Mayor’s permit 300.00

PENRO 500.00

Fire safety 156.00

Sticker/Plate 150.00

Health fee 550.00

Sanitary inspection fee 500.00

BIR 600.00

DTI 500.00

Total P3, 976.0

SOCIO ECONOMIC STUDY

A) Employment

Swee t Sh i l ene s ’ Con t r i bu t i on t o soc i a l and economic

deve lopmen t i s p r ima r i l y fo r t he emp loymen t o f t he peop l e

spec i f i c a l l y t o t he r e s i den t o f Bagong Ba r r i o Ca loocan C i ty .

B. ) Income

I t s ab i l i t y t o gene ra t e cons i s t en t p ro f i t s w i l l u l t ima t e ly

de t e rmine i t s wor th i n t he ma rke t p l ace .

C. ) Taxes

Wi th t he t axe s , Swee t Sh i l ene s ’ w i l l pay t o t he

Mun ic ipa l Ha l l and BIR , i t w i l l be a pa r t on bu i l d ing a

p rog re s s ive na t i on .

D. )Supp ly o f Commodi t i e s

The re i s a l a rge marke t f o r l e che p l an . Supp ly i s l i ke ly

p romi s ing .

E. ) Demands o f Mater ia l s

Demands fo r ma t e r i a l s a r e cons ide red adequa t e